Distribution strategies: optimize channels to reach your market.

In the business world, distribution is the art of getting products to their destination quickly, efficiently, and in perfect condition — something that requires a very precise distribution strategy. Logistics is the beating heart that connects supply with demand and ultimately makes business activity possible. In other words, if the supply chain fails, the final result will be affected, and reputational crises will begin. That’s why, behind every successful product, there lies an intelligent and effective distribution strategy.

In this journey of invisible yet vital connections, companies map their shortcuts to the market, designing clever strategies to offer a distinctive distribution service. Especially in the world of e-commerce, a single day’s delay in delivery can make a customer abandon their cart and switch to a competitor.

In this post, discover the fascinating world of logistics and its distribution strategies — from traditional channels to the most innovative and disruptive ones that are reshaping today’s commercial landscape.

Introduction to distribution strategies: What are they and why are they key to business activity?

As a customer or user, you’ve probably experienced firsthand how important it is for your orders to arrive in good condition and within the expected time frame. This is the result of a good distribution strategy, which is nothing more than the design of a comprehensive plan to move products or services from the production or storage site to the final consumer. This strategy includes key decisions about which distribution channels to use (such as retailers, wholesalers, online sales, and others), the logistics involved in transportation and storage, inventory management, the location of sales points, and customer service at different touchpoints. The main objective of a distribution strategy is to ensure products are available and accessible to consumers efficiently and profitably.

Key factors that define a good distribution strategy

“Efficiency” is the concept that best defines a strong logistics strategy. In the transport of goods, customers and intermediaries expect maximum speed, high service quality, and the greatest possible cost savings — both economic and energy-related.

Here are the 5 most important tips in the supply chain

• Market knowledge: understanding the needs, preferences, and behaviors of the target audience is essential to choosing the most suitable distribution channels.
• Selection of appropriate channels: identifying and using the optimal distribution channels, whether physical (retail stores, wholesalers) or digital (e-commerce, social media), depending on the type of product or service and consumer behavior.
• Efficient logistics: ensuring a smooth and effective supply chain to minimize costs and delivery times, guaranteeing constant product availability at points of sale.
• Pricing strategy: aligning the distribution strategy with pricing decisions to maintain profitability and competitiveness across channels.
• Customer service: offering effective and satisfactory after-sales service to generate customer loyalty and trust.

What are the new distribution channels like?

Distribution channels are fundamental to keeping logistics running smoothly and without obstacles. Today, thanks to the application of new technologies in this field — such as automation, robotics, and the use of big data in various stages like stock storage — distribution channels have become significantly more efficient and effective. So, if you’re thinking of starting your own business and need to decide on a distribution channel, keep these tips in mind:

Omnichannel: the pandemic accelerated the use of multiple purchasing channels. Wholesalers and the distribution environment in general are investing in opening new sales channels and optimizing existing ones.

Direct-to-consumer expansion: although wholesale activity has traditionally focused on professional clients, there is now a growing trend toward reaching end customers directly.

Digitalization: companies are using technology to connect directly with the business from anywhere. Cloud-based work and pay-per-use models are driving this digitalization.

Evaluation of distribution channels: companies are assessing new distribution channels based on criteria such as the ability to comply with global and country-specific regulations, the infrastructure required to support transparency in financial information, and data collection, collation, processing, and analysis capabilities.

Technology in electrical distribution: the use of new technologies and monitoring tools enables greater understanding of the network and the application of AI-based solutions for optimal and efficient management.

Discover some of the latest types of distribution systems that are revolutionizing logistics

• Self-supporting automated warehouses: Hayat Kimya, one of the leading manufacturers in the Eurasian consumer goods market, has built one of the largest self-supporting automated warehouses in Europe. This distribution system is particularly useful in areas with high seismic risk.
• Radial, ring, mesh, primary selective, secondary selective, and mixed systems: these systems offer a range of options that can be adapted to the specific needs of electrical infrastructure.
• Intensive, selective, exclusive, direct, and indirect distribution strategies: these distribution strategies are used depending on each company’s specific needs.
• Logistics innovation: companies are innovating in logistics to ensure the best customer service and reduce operating costs. This includes continuous process renewal — sometimes through technology, and other times through strategic logistics approaches.

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